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CAFTA's impact on Central America's environment
Background The biodiversity of the Central American countries is critically important. While these countries account for less than one percent of the earth's land area, 8% of all the planet's biodiversity is found in this region1, including some 24,000 plant species, over 1000 bird species, over 600 species of reptiles and several hundred types of mammals2. Three out of four migratory bird routes in the Western Hemisphere pass through the CAFTA countries3. Of the 836 migratory bird species that are listed in the U.S. Migratory Bird Treaty Act, some 350 neo-tropical migratory species (mainly songbirds) migrate through or are winter residents of the CAFTA countries4. Even the U.S. trade negotiators admit that CAFTA could contribute to the "loss of migratory bird habitat" through investments in the agricultural sector5. Today, the region is facing critical environmental problems. Deforestation is a primary concern. Between 1950 and 1990 the region lost more than 70% of its forest cover6, and between 1980 and 1990, deforestation averaged 1.4% annually. El Salvador has less than 5% of its original forest cover remaining7. Deforestation is caused both by the expansion of agricultural policies as well as an increase in logging and mining (partly thanks to new techniques and advancements that have opened up previously inaccessible areas for exploitation). The Inter-American Development Bank found that nearly 75% of the people in Central America live in conditions where vehicular congestion, industrial and vehicular emissions, depleted water sources, water pollution, and land and housing scarcities reduce productivity, increase violence and diminish public health8. If we look back at the environmental impact of NAFTA, one of the most detrimental effects was caused by the restructuring of the agricultural sector (with U.S. corn being dumped on the market), driving 1.5 million small-scale farmers off their land. Peasant farmers who were driven off their lands were forced to clear trees for farming and for fuel. Since the implementation of NAFTA, the annual rate of deforestation in Mexico rose to 1.1 million hectares. The previous rate of 600 thousand hectares per year was practically doubled, and Mexico has one of the highest deforestation rates in the Western Hemisphere9. A report recently published by OXFAM International documents that CAFTA could threaten the livelihood of thousands of small rice producing farmers, most of whom already live in poverty. The rice sector provides for approximately 1.5 million jobs in the Central American countries10, yet the small farmers of Central America might find themselves in a similar situation as their Mexican counterparts 10 years ago.
What is the level of environmental protection in the CAFTA countries?
CAFTA's environmental chapter Article 17.1 of CAFTA states that each country has the right "to establish its own levels of domestic environmental protection...encourage high levels of environmental protection, and ... strive to continue to improve those laws and policies." While a country "shall not fail to effectively enforce its environmental laws" this only applies if the lack of enforcement has been a "sustained or recurring course of action or inaction," i.e. a one-time violation may not be enough13. CAFTA also allows countries "the right to exercise discretion with respect to investigatory, prosecutorial, regulatory, and compliance matters,"14 contradicting the previous article and telling the countries that 'you are supposed to enforce your environmental laws, but only if you want to.' Countries are asked to "strive to ensure"15 that they don't lower or weaken their environmental laws in order to attract investment, but again, there is nothing here clearly making this a requirement, and if a country violates even this loosely worded article, there is no way to take advantage of even the limited options provided through the Dispute Settlement chapter16. However, even if there was strong enforcement language in CAFTA, the more fundamental question is about what exactly is to be enforced. Even the USTR acknowledges that the CAFTA countries' environmental laws are weak (and even in countries with relatively good laws on the books often do not fully implement or enforce these laws). So far, there is almost no funding set aside to assist the CAFTA countries in helping to develop and strengthen their environmental programs.
Enforcing CAFTA's environmental provisions While corporations can use CAFTA's investment chapter (Chapter 10) to sue governments directly for cash compensation if their profits have been undermined20, no such avenue is open to citizens of CAFTA countries. CAFTA's "citizen submission" process does not provide for clear, enforceable outcomes if a country is violating the environmental rules in CAFTA.
Conclusion Download this report as a Word doc
1Mauri, Carolina: Environmental Law Enforcement and Compliance in Central America, page 1, April 2002
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